Wage hike still uncertain–Neda

WORKERS in Metro Manila will have to wait for more time before the proposed P75 across-the-board wage hike can be decided on by the National Wages and Productivity Commission (NWPC).

Dennis Arroyo, director of the National Economic and Development Authority (Neda) National Planning and Policy Staff who represents the agency in the NWPC, said more time is needed to evaluate the recovery, since there is still a possibility the global economy will enter into a double-dip recession.

Arroyo said this could mean a “Round 2” of the crisis which would consequently affect the Philippine economy through declining exports and imports, as well as foreign direct investments.

He said that after the last hearing to be held on April 29, the NWPC will be in a better position to make a call on whether to grant or not the P75 across-the-board wage hike.

“There is a possibility that the global economy will relapse, that’s why we cast our radar. The last hearing is on the 29th, by then we will have to decide,” Arroyo said.

“Right now, everything’s up in the air. We’ll evaluate how GDP [gross domestic product], inflation and employment will be affected by the global situation,” he added.

He added that there is also a need to conduct separate meetings with employers, labor organizations, and the Regional Tripartite Wages and Productivity Board to get a clear view of the wage issue.

Arroyo stressed, however, that this does not mean that the hike will not be granted, only that more time will be needed to decide on the matter.

“We need more information on the latest in the global economy,” Arroyo added.

Earlier, International Monetary Fund Managing Director Dominique Strauss-Kahn warned world leaders of the possible dangers of implementing exit strategies from stimulus packages to cushion the impact of the global crisis.

Kahn stressed the timing of implementing an exit strategy. She said their premature implementation could cause a double-dip recession while a delayed exit strategy would cause public debt to soar.

“Growth is better than expected, but still fragile. In large part, it is still supported by public funding,” Kahn said in a previous statement.

The Trade Union Congress of the Philippines earlier filed a petition for a P75-per-day increase in Metro Manila, Davao and Cagayan de Oro, while labor group Kilusang Mayo Uno maintained its call for a P125 wage hike. –Cai U. Ordinario / Reporter, Businessmirror